I am thinking of playing in a MTT (probably the $1000 mini main event) and asking some friends to help stake me. I am curious, does anyone have experience with staking and the subsequent taxation and/or paperwork (or lack there of)? I am the kind of person who asks these questions before actually needing an answer to them (i.e., before placing ITM in a tournament and figuring it out).
In addition to wanting to make sure that I pay out my stakers correctly (just after-tax pro-rata I assume) I want to make sure there is no confusion about who is owed what in case I place ITM. I have heard some horror stories in the past where someone pulled out of a handshake agreement (after realizing he was going to succeed) without the other party's consent only to create a big bru ha ha and ruin the friendship. So, any advice on up front work to do if I am going to email friends and ask them to stake me? Or should I just fly by the seat of my pants, fire off an email, play in the tourney, and figure it out if I place ITM?